SK Hynix has abandoned plans to list its US memory subsidiary Solidigm on an American exchange, citing recent capital market conditions and share price trends. The decision came after South Korean regulators warned the move could dilute minority shareholders and amount to a duplicate listing.
A regulatory filing dated October 23 confirmed the company had halted its review of a potential Solidigm listing and suspended discussions around pre-IPO fundraising. Reuters had reported in September that a private placement could raise about 5 trillion won ($3.8 billion), with a Nasdaq listing possible as early as 2027. Media reports had estimated the IPO could raise roughly $10 billion and value Solidigm at up to $100 billion, while other projections cited a $15 billion listing. Goldman Sachs and Morgan Stanley had been appointed to lead the planned sale.
Regulatory concerns played a central role. Financial Supervisory Service Governor Lee Chan-jin told lawmakers that both the FSS and the Financial Services Commission considered Solidigm subject to restrictions on duplicate listings. FSC Chairman Kim Byoung-hwan said the same rules would apply even for an overseas listing. South Korean authorities have framed the issue around protecting minority investors and addressing the country's long-standing "Korea discount."
Solidigm was established after SK Hynix acquired Intel’s NAND and SSD business in a deal worth about $9 billion, announced in 2020 and completed in 2021. The unit now focuses on high-capacity solid-state drives for servers and AI data centers.
SK Hynix shares initially fell as much as 3% on October 23, then reversed course and closed up 4.4%, defying broader market weakness. The previous day, the Nasdaq Composite dropped 2.6% and the Philadelphia Semiconductor Index fell 6.7%, while concerns about Meta’s rising AI spending and record credit default swap costs weighed on markets.
SK Hynix said the decision does not reflect any deterioration in Solidigm’s growth prospects or investment needs. "In light of recent capital market conditions and share price trends, Solidigm determined that it was necessary to reassess whether an IPO would be the most beneficial option for SK Hynix and its existing shareholders at this time," the company said. It added that new production capacity would still be required to meet demand for memory used in AI systems.
